Paladin Energy (PDN)

The share price of uranium producer
Paladin Energy
has slid further since it revealed a larger than expected net loss in the September quarter. Shares have fallen 10 per cent since the announcement on November 9. At 84.5¢, the stock is at its lowest since 2005. Paladin’s quarterly results showed a 41 per cent drop in sales revenues, in addition to high gearing in comparison to its peers and cash flow at break-even point. The fluctuation in the price of uranium is also contributing to the uncertainty. The price cloud played a determining factor in the decision to defer the stage four expansion of Paladin’s Langer Heinrich project in Namibia. News that the company’s aggressive campaign to reduce costs has had some success proved a highlight of the results, along with the $200 million offtake contract with a major utility to provide 13.73 million pounds of uranium from 2019 through to 2024.